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Church & Dwight (CHD) Beats Q2 Earnings; Sales Lag Estimates
August 03, 2017

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Church & Dwight Company, Inc. (CHD - Free Report) develops, manufactures and markets a broad range of household, personal care and specialty products. It is the leading U.S. producer of sodium bicarbonate, popularly known as baking soda.

Church & Dwight’s stable portfolio of value and premium products, aggressive productivity programs and tight management of overhead expenses, along with robust sales and earnings growth help propel the stock. The company also has a robust acquisition history, which is expected to add strength to the company’s sturdy portfolio and boost margins. However, Church & Dwight has been witnessing pricing pressures, rising commodity costs, stiff competition and weak consumer demand in many of its markets. The company also remains exposed to unfavorable foreign currency translations, which might hurt sales and profits.

Earnings Estimate Revision: The Zacks Consensus Estimate for 2017 have remained stable, while it has increased by 0.5% in 2018 in the last thirty days. However, in the trailing four quarters, excluding quarter under review, the company outpaced the Zacks Consensus Estimate by an average of nearly 6.3%.

Zacks Rank: Currently, CHD has a Zacks Rank #3 (Hold). You can seethe complete list of today’s Zacks #1 Rank stocks here. The Zacks Rank could change following Church & Dwight’s earnings report which was just released. We have highlighted some of the key stats from this just-revealed announcement below:

Earnings: CHD beats earnings. Our consensus called for EPS of 39 cents, and the company posted adjusted EPS of 41 cents per share instead. Investors should note that these figures take out stock option expenses.

Revenue: CHD posted revenues of $898 million, missing our consensus estimate of $904.17 million.

Key Stats to Note: Church & Dwight’s organic sales increased 1.8%, while adjusted earnings declined 4.7% year-over-year. For 2017, the company continues to expect its adjusted diluted EPS to grow 8.5% from the prior-year, as expected earlier.

Stock Price: Shares were down 2.1% in pre-market trading.

Check back later for our full write up on this CHD earnings report later!

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